Chemical tanker operator Odfjell reported a net profit of $40 million for the third quarter of 2026 on Wednesday, November 4. This was down from $54 million in the preceding quarter.
Daily time charter equivalent (TCE) earnings fell to $27,892 from $29,486 as spot markets softened from their early second-quarter peak. Higher lifted volumes and 455 additional commercial revenue days kept total time charter earnings at $192.1 million, against $195 million in the second quarter.
The second-quarter result included a $6.9 million settlement with an Odfjell Tankers customer following a favourable arbitration outcome. Adjusted net profit, which excludes non-recurring items, was $43 million, compared with $56 million.
Three newbuilds joined the fleet during the quarter. These were the owned 26,000 DWT Bow Pluto, delivered in July, and two vessels on long-term time charter. The additions raised operating expenses by $3.4 million and also lifted depreciation and net interest costs.
Odfjell carried 3.6 million tonnes, its highest quarterly volume since 2022. "Clean petroleum" product volumes rose nearly 200 per cent, while Middle East Gulf volumes remained unavailable.
"Global seaborne chemical volumes remain below pre-conflict levels, but vegoil and biofuel volumes compensate. This, combined with strengthening MR tanker earnings and therefore near-zero swing tonnage, supported chemical freight rates," said CEO Harald Fotland.
"Regular trading patterns continue to be disrupted. We expect the underlying net result in 4Q26 to be somewhat lower than in the third quarter," he added.
The company identified vessel deliveries and potentially diminishing inventories as risks for the coming quarters.
After the end of the quarter, Odfjell agreed to sell the 15-year-old Bow Elm and Bow Lind, with an expected capital gain of $9.6 million. It also secured two more 40,000 DWT stainless steel supersegregator newbuilds on long-term time charter for delivery in 2029. These are in addition to the four owned vessels on order in Japan.